Yeah, the CEO is not on TV for pumping stock. This is just like many others before. Last Summer we Pokemon Go. It was cool, because it got people to go out side to visit different locations. It drove people to parks, coffee shops. Even Sprint signed up to help drive customers to their local stores.
I've told a number of people about Movie Pass and the first thing they did was pick up the phone and sign up for member ship. Because you get to see the movie as soon as it's on big screen, no wait. So I believe the word will spread and fast. They can't keep up with issuing the card is clear indication that demand was through the roof.
Nowadays, you got app right on your phone that can tell you which theater accepts the card. It can collect information like what movie you watched, and how often you went to the theater. What kind of movie people watch most often can help filmmakers a great deal.
Driving people to theaters will benefit not only the local theater, but potentially restaurants near by. On slow days a movie room might not even fill up half the seats, and it still cost the same for the theater to show the film. Increasing viewers have no additional cost for the theaters. It's something that the theaters would welcome because it boost sales and revenue.
Because of this, I see opportunities where the theater will cut deals with Movie Pass to offer a discount for driving more viewers to the theater. So the cost should go down for Movie Pass.
The business model is basically investing into acquire customer base at a cost. But, once you get that customer base, you have that leverage to deal with other people involved. In a way it helps the entire film industry right down to local restaurants. It's beneficial for the film makers and theaters to actually support this. And, I think this is the important part. Obviously the film makers wants more sales too.
AMC deal is a bad move on AMC management. AMC made itself looked like a sore loser. Just not the way to present the company image to the public. AMC stock is down for a reason. Imagine if AMC were to welcome this change and state that they will work with Movie Pass to drive business it would actually increase their stock price because Movie Pass will likely help them generate more revenue on tickets and other sales.
Threatening to block Movie Pass just makes Movie pass members feel unwelcome. It's like saying we don't want your business at AMC. AMC is going to hurt bad if they keep this up, it's just a very bad move by AMC management.
